Freakonomics Radio - 557. When Is a Superstar Just Another Employee?

Episode Date: September 14, 2023

The union that represents N.F.L. players conducted their first-ever survey of workplace conditions, and issued a report card to all 32 teams. What did the survey reveal? Clogged showers, rats in the l...ocker room — and some helpful insights for those of us who don’t play pro football. For show notes, visit freakonomics.com/podcast/when-is-a-superstar-just-another-employee/

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Starting point is 00:00:00 When I say the words workplace environment, where does your mind go? If you're like most people, you might think about an environment like this. Or like this. Maybe even something like this. Stand clear of the closing doors, please. What you probably don't think about when I say workplace environment is this. But if you are one of the roughly 2,000 men who play in the National Football League, that's your office. I mean, it's business. Like, let's not get it wrong. It's business. The NFL Players
Starting point is 00:00:45 Association, or NFLPA, is the union that represents the players. And they recently conducted their first ever employee survey about workplace conditions. I would never have thought to ask, are there rats in your locker room? And they gave letter grades to each of the league's 32 teams. This is really about, are we giving you the inputs you need to be as productive as possible? The NFL is the richest and most successful sports league in history. Each team is worth at least $4 billion. Nobody wants to be known as the cheapskate. Before, when it was rumored you were the cheapskate, it was harder to prove.
Starting point is 00:01:23 Now there's data. And what does the data have to say? Among U.S. employees in general, job satisfaction is higher than it's been in decades. How satisfied are NFL players? Now, you may be saying to yourself, who cares about the workplace environment of NFL players? They make so much money, the environment shouldn't matter. Or you may say, pro football is so different from what I do for a living, there's no way I'm going to learn anything worthwhile from this. Well, if we have done our job in making this episode, you will.
Starting point is 00:01:59 At the very least, with a new NFL season upon us, you will learn which teams got the best grades and the worst. Never really heard of an F-minus before. This is Freakonomics Radio, the podcast that explores the hidden side of everything, with your host, Stephen Dubner. Imagine that you have just graduated from college with a degree in, say, mechanical engineering, and you know exactly what kind of company you want to work for. And let's say there are 32 such companies within a hundred mile radius of where you want to live. So which company will you end up at? To a large
Starting point is 00:02:58 degree, that is up to you. You can apply wherever you'd like. And if that company thinks you are qualified and they make you an offer, you can decide whether to accept or reject the job. This is not how it works in professional sports. Imagine now that instead of studying mechanical engineering, you went to enough to play in the National Football League, or if you're an athlete good enough to play in any of the other major American sports leagues, you don't get to choose which team you play for. It's the teams that choose the players in an annual draft. Teams with the worst records the previous season typically get to pick earlier in the draft, and the best teams pick later. In the NFL, most rookie contracts will bind you to that team for four years. The top-ranked players may sign huge rookie contracts with millions of dollars guaranteed,
Starting point is 00:03:52 but that's just the top of the pyramid. Around 50% of NFL players make the league minimum. This year, that's a base salary of $750,000 for a rookie with gradual increases for each year of service. So yes, that's a big paycheck compared to most first jobs, but the average NFL career is barely three years long. So a lot of players are out of the league before their rookie contract expires. They are replaced by someone even younger and cheaper. If you are good enough to stick around past that rookie contract, and if you're lucky enough to have remained healthy, those are two big ifs, then you become what is called an unrestricted free agent,
Starting point is 00:04:33 and you can sell your services to whichever team wants you. Finally, after four years in the NFL, you have achieved the workforce freedom of a newly graduated mechanical engineer. At this point, you may be in for big money, $5 or $10, even $50 million a year. And how does a free agent decide which team to play for? Your agent will speak to all the interested teams, try to drive up your price, and help you sort through the offers.
Starting point is 00:05:04 There's a lot to consider. How the payout will be structured, what kind of incentives and bonus clauses you can get in the contract, even the occasional restrictive clause. Like in the recent contract, the Arizona Cardinals offered to re-sign their star quarterback, Kyler Murray. They wanted Murray to, here, I'll read from the contract. They wanted him to complete at least four hours of independent study each week. In other words, they wanted to make sure he's doing his homework, studying the playbook, watching film at night, things like that. Arizona was criticized for adding this clause, and they ultimately removed it.
Starting point is 00:05:40 And Murray did sign the contract, a five-year deal that could pay out more than $230 million. When players get to choose their team, they usually go with the highest dollar offer. But there are other factors to consider. How good is the team? Most players want to play for winners. How good is the coaching staff? And how secure? If they're in danger of getting fired, you may be too. You might consider the weather. Are you a Miami guy or a Minnesota guy? And maybe you will also consider the workplace conditions at your new club. How good is the locker room and the weight room?
Starting point is 00:06:21 What about the food? How does the team treat your family members on game day? Those are the kind of questions most of us wouldn't think to ask, but Joseph Carl Tretter Jr. isn't most people. Yeah, J.C. Tretter, president of the NFL Players Association. Okay, tell us where you went to college and what you studied. I went to Cornell University and studied industrial labor relations. That's a pretty typical college and major for an NFL prospect, yes? Yeah, it's not the normal pipeline to the pros.
Starting point is 00:06:53 And I think leading into my election, it probably helped substantially because there's not many Cornell ILR grads walking around the NFL. The election, Tretter mentioned, was for the union presidency. He had a long, successful career in the NFL, nine seasons as an offensive lineman for the Green Bay Packers and the Cleveland Browns with around $45 million in career earnings. He retired in 2022 at age 31, and he had two years left on his term as union president. And I was kind of looking for some new projects to do. So I had a ton of time on my hands. And it was like, I'm going to take a stab at this.
Starting point is 00:07:34 This being the workplace survey of all current NFL players, which the union had been talking about for years. And then as we saw the responses start pouring in, this was kind of a proof of concept. Yeah, I was shocked at the response rate. Describe how many players got the survey and how many responded. So we have 2,200 active players and we had 1,300 fill out the survey, which is about 60%. As we saw the numbers start pouring in, it was like, oh man, we have to do something here. It's going to be like report cards. You had to ask somewhat qualitative, but also quantitative questions to try to figure out how to compare these franchises. Give an example or two. You know, rate your locker room one to five, but then also what would you change about your locker room? What's missing in your locker room? What would be in a five rated locker room and
Starting point is 00:08:19 what would be in or maybe missing from a one rated locker room? I mean, I would never have thought to ask, are there rats in your locker room? Like, are there physical rats in your locker room? And yet... That comes out in the survey because there were. In Jacksonville, we should say. Not everywhere. Right.
Starting point is 00:08:34 You have to allow the players to fill you in with what's bothering them. Like, there's one team that doesn't have outlets in their lockers where they can't charge their devices. Okay. Who is that? Cincinnati. The survey was conducted online with guaranteed anonymity. In our business, you're so on razor's edge of being cut and losing your job.
Starting point is 00:08:59 The idea that these owners actually think players can walk into their office and tell them like, hey, I think you're being cheap and you're not spending enough money on us and there wouldn't be any retribution is a little crazy to me. There are some players that do, and a lot of it's the star quarterbacks who are untouchable or players that have guaranteed money and feel like they're safe and they can go in there and they can try to drive change for their teammates because they're a little more protected than the average player. But that was one of the reasons about making it anonymous. It was allowing everybody
Starting point is 00:09:29 to voice what they've seen without fear of retribution. The survey covered eight categories. Three were about the physical facilities, the locker room, weight room, and training room. That's where a player goes for a massage or the hot tub or to get an injury treated. There was one question about nutrition. How well does each team feed and hydrate the players? Also, travel. How comfortable are the airplane seats? How about the hotel rooms? And do you have to have a roommate? The survey also asked how well the team takes care of the players' families during the games. Is there, for instance, a place for your mom or maybe your wife and young kids to watch where they won't get
Starting point is 00:10:10 pelted by beers? And finally, the survey asked about the training staff and the strength staff, but interestingly, not the coaching staff. I didn't want a category that I felt could be too tracked to like wins and losses. I really wanted to stick to standard of care. Like, hey, where do you spend most of your time? The locker room, the training room, the weight room, the cafeteria. Like what staff is around you most of the time? The training staff, the strength staff. How do you travel? How do they treat your families? Like those are the core issues that impact their daily life. And I didn't want it to become like, hey, this is a good coach because we win a bunch of games. That's not telling us anything. There's some coaches that have a leadership council of older players that meet once a week and then acts on those
Starting point is 00:10:53 recommendations. And I think that's what a good workplace looks like. That was something probably 15 years ago in the NFL, there wasn't any of that. It was very much, we're doing this because I'm the coach and I'm the boss and I say we're doing it. And now I think more and more of the younger coaches are coming in, being much more receptive to hearing feedback and acting on that feedback. Tritter says the players union had two primary goals in running the survey and giving each team letter grades. The first was to give players information that could help them decide where to work if they ever got that choice. The second goal was to help raise the standards across each club by bringing problems out into the open. That's why the union published the results.
Starting point is 00:11:35 We will put the link in our show notes if you want to take a look, and why they graded each club in all eight categories. Because in the NFL, turnabout is fair play. We're always measured. We're always graded. They can use letter grades, number grades, like you play 60 plays and they're like, all right, you did your job on 80% of the plays. That is Jalen Reeves-Maben. He's a linebacker for the Detroit Lions. We're judged at every step. And I don't think there's ever really been a time where accountability has gone to the teams or the ownership of like, hey, are you being excellent here? Where's your grade in this area? Reeves-Maben is on the executive committee of the Players Union. He's been in the league since
Starting point is 00:12:21 2017. He started with Detroit, then went to Houston for one season, and now he's back in Detroit on a one-year contract with a base salary of $1.25 million. And what does Detroit get in return for that salary? It's the combination of the mental aspect where every week I have to learn a new opponent, I have to learn what they're trying to do to attack me. But I also have this physical aspect of I'm playing a violent game. If I'm not violent, I'm probably going to get hurt, but I can't be scared. I can't be scared to get hurt because then that's going to show your performance.
Starting point is 00:12:54 So you kind of got to have a recklessness in a sense or just a willingness to, you know, take that pain. That combined with the physical, the conditioning, the stamina the stamina the energy the persistence you have to have it's a lot so i think it's extremely hard but i know that in all walks of life people are working extremely hard i have to add to just the media scrutiny and the fact that you're basically on public display all the time i don't think the average person knows how heavy that feels on your shoulders. You can basically determine a mood for a whole city or a whole state based off what you did on Sunday in a three-hour period. So, you know, there's a lot that comes with it. The NFL is a commercial juggernaut. If you look at Variety's list of the top 25 primetime TV broadcasts from last year, you will see that 22 of those 25
Starting point is 00:13:47 were NFL games. The only exceptions were the Oscars, the Winter Olympics, and the college football championship game. I mean, there's so much money involved. And with so much money, the league has TV deals worth more than $100 billion over roughly a decade. Reeves Maben says the survey findings were pretty surprising. Well, there was reports of teams having like a rat infestation in a locker room. There's guys who don't get fed after practices, like the team was charging them for food. I know sometimes these things might seem like, oh, you got enough money to pay for it, but
Starting point is 00:14:25 we are operating at the highest level possible. Like they demand excellence from us. And I think that we should be demanding excellence from the teams. J.C. Tretter was also surprised to learn that some players were being charged for food at team facilities. That was one where I had to reach out to several people to make sure I was hearing it correctly of like, wait, I just want to make sure like for the fourth time, is this true? Because that is so preposterous in a job where what you fuel your body with is so important to almost push them out of the building, to push them to fast food, to push them to poor nutrition. It's such like a backwards way of looking at our industry. It was crazy. And why do you think those teams do it? Is it just, it's the way it was always done? Are they
Starting point is 00:15:08 really trying to save money? I don't know. It was one team. It was the Arizona Cardinals who made people pay. There are three other teams that didn't provide it. And I don't think the cost they were charging would pay for the meals anyways. It's almost like the control factor of it, of, hey, just know your place. Can you talk about what you mean with that know your place sentiment? Because I think the public sees football players as superstars, not as employees coming into a workplace with bosses and needing to know their place. Yeah, from a union perspective, we're negotiating for the same things that any union is, better wages, better benefits, better working conditions. But there is a level of control that's always being fought after. And the league, there are just workers and some coaches and some bosses
Starting point is 00:16:06 are better at working with their employees about different changes that need to be made, whether it's scheduling, whether it's technique, whether it's how they operate, and some aren't good. I sometimes get frustrated when we're defined too much as just players because I think it takes us away out of the real world and puts us in the football world. And we are workers and we're fighting for the same things. And I think that's one of our struggles as a union because of our short lifespan where somebody comes into a union job and they can make sacrifices and bargain a certain way because they have the opportunity to be in that job for 30, 40 years. So, sacrificing for today, they're going to see the fruits of that labor. That's not always true for us. So, the sacrifices one group makes, they're probably never seeing the benefits of those
Starting point is 00:16:53 sacrifices. But when it comes to the negotiating, there is a pie out there. And I think your job as an individual or as a union is to get the biggest share possible. I have to say, you can really sound like an old-fashioned union agitator when you need to. When you look at the overall results of your survey, especially the team rankings, the teams that come in ranked high and the teams that come in ranked low, among the top-ranked teams, what do they have in common, whether it's ownership, whether it's an attitude? The top three teams all have brand new facilities. When we talk about facilities,
Starting point is 00:17:31 I think sometimes the fans don't understand how different franchises work. So everybody thinks of their stadium. So like the Rams and the Chargers were poorly ranked. And you heard a lot of questions of like, whoa, SoFi Stadium's brand new. They put billions of dollars into it. How is it poorly ranked? That's not where players spend their days. That's where they play for one day a week. But their facilities are usually located elsewhere. So some of that is just random when the survey is done. So in 10 years, those facilities will be getting a little ratty.
Starting point is 00:17:56 And whoever else has new facilities, they'll probably rank a little bit higher because of that. Yeah, if teams do get new facilities, right? Like some of these teams have had old facilities forever. So who are the top three teams in the Players Union Survey? Top three teams are Minnesota was number one, Miami was number two, and Las Vegas was number three. The owners of the Minnesota Vikings and the Miami Dolphins both made their money in real estate development. So it probably shouldn't surprise us
Starting point is 00:18:24 that they brought their real estate shops to their football investments. The big surprise, to me at least, is that some of the best teams in football rank toward the bottom. If you look at the winners of the past five Super Bowls, the New England Patriots, the L.A. Rams, Tampa Bay Buccaneers, and the Kansas City Chiefs, who won it twice, none of them ranked higher than 24th out of 32 teams. I asked Tretter if he was surprised to see so many top-performing teams at the bottom of his list. No, and that's the thing. Having a star quarterback like Patrick Mahomes is the ultimate deodorant, whether it's talent around him or facilities or coaching. He's going to make everybody look good because he is that freaking good as a quarterback. But that doesn't mean the
Starting point is 00:19:10 offerings shouldn't be up to snuff. It shouldn't be, hey, come here to play with Patrick Mahomes and potentially win a Super Bowl. But also the facilities are going to be old and dilapidated and you have to deal with that. That shouldn't be the trade-off. Like just pay for better facilities. If you're making so much money, the idea of making it a choice of one or the other when you could just provide both doesn't make much sense to me. What do the teams at the bottom have in common? Is it something as simple as they typically have older practice facilities? We asked the players, do they think their owner is willing to invest money to make the
Starting point is 00:19:44 facilities better? And I think the teams at the bottom, that number tracked being down there. You don't have to knock down walls, but it's are you willing to invest the money necessary to make the changes necessary to fix the issues you have? Like for Cincinnati, to rewire the locker room to make sure there's outlets there is not that costly. For Washington, there was complaints that there's poor drainage in the showers. So the guys are literally standing in the water that's been run off from the guy next to them who's showering the dirt and the blood and the sweat. Like, these aren't knock the walls down and build a new facility. Let's get a plumber in there and fix it. The Washington Commanders, with their backed-up showers, ranked dead last in the NFL report card. But the trouble doesn't end there for Washington.
Starting point is 00:20:39 The team has been plagued with a variety of scandals in recent years concerning workplace harassment and financial impropriety. The club's owner, Dan Snyder, was wildly unpopular, even among his fellow owners, and he recently sold the team. All those problems in Washington got a lot of press, but at most clubs, routine problems don't get much coverage. And J Treader says that when players change teams, they often don't have much information until they show up at their new workplace. And when they're making these decisions about where they're going to spend potentially the rest of their career, they should know what they're getting into.
Starting point is 00:21:18 I talked to a lot of guys as we did this survey, and I said like, hey, you know, your team's one of the worst graded teams. Did you know that before you signed? And they're like, survey. And I said like, hey, your team's one of the worst graded teams. Did you know that before you signed? And they're like, no. And I got here and now I feel trapped. The quality of care is poor and the facilities are poor and I'm stuck here. So even if I'm making $8, $10, $15 million a year and the facilities are poor, it's enough to have buyer's remorse, you're saying? Yeah. And again, most of our guys aren't making that. So you start looking for differentiators. And those guys, those minimum salary guys
Starting point is 00:21:48 are the lunch pail hard hat guys of your team, the special teams guys, the offensive linemen, the backups that make the team work. Those guys are looking at it and saying like, hold on, I'm gonna get the same dollar amount from every team. What are the other variables I can look at? And before it was,
Starting point is 00:22:09 what do I think of the area, like the city, like how close is it to my family? And now it's like, hold on, I'm not going to go to a team that has weight room floors peeling up and charges me for dinner. I'm going to go someplace else. So is this NFL team report card working? Coming up, we'll hear from an agent, an economist, and later, the people who run the teams. I'm Stephen Dubner. I love making Freakonomics Radio, and I love that you're listening to it. We'll be right back.
Starting point is 00:22:43 Jim Ivler has worked for more than 25 years as an agent for NFL players, although he isn't an agent technically. Technically, we are called certified contract advisors. To become an NFL PA certified contract advisor, you must first have some level of a graduate degree. You have to pass a written test. You have to pay your annual fee and You have to pay your annual fee, and you have to attend an annual seminar. And you also have to demonstrate a history of not embezzling money and things like that, right?
Starting point is 00:23:13 Well, when you go through the registration process, they're certainly doing a background check, as they are allegedly doing background checks every year when you renew your certification. Iveler's job, as the name implies, is to advise players on their contracts. For players coming into the NFL from college via the draft, remember, they don't choose where they'll play,
Starting point is 00:23:41 and their salary is predetermined by how high they were picked in the draft. We're also accustomed to the draft, and that's how talent is dispersed throughout the league. But when you think about it in more of a macro level, it's a pretty incredible process. I mean, you're told, as a recent person coming out of college, where you're going to work. I know when I graduated law school,
Starting point is 00:23:59 if someone had called me up and said, you've just been drafted by a law firm in Green Bay, Wisconsin, and that's where you're going to go, I would have said, you want to bet? But obviously, these guys go, most of them very happily, to whatever team drafts them. The process, though, really is we're trying to achieve generational wealth for our clients. And I know it's a buzzword and a cliche, but it's really true. The goal needs to be that when the player is done playing in the NFL, whether they play four years or 14 years, that they can retire with enough money in the bank so they can do whatever it is they want to do with the rest of their life because it's a passion, not because they need the paycheck. And so unless you're a, I'm going to call it a top 20 or 25 pick, you're really not getting that generational wealth from your first contract.
Starting point is 00:24:43 So we're really all in this game to help our clients achieve a second contract. And if they're really blessed, maybe a third and a fourth contract. If you can get that bite at the apple where you've performed well enough, where there's multiple teams interested in you, that's where the leverage maybe flips and it's on the player's side. It doesn't happen to a lot of guys. And I'm sure you've heard the average career span of an NFL player is 3.3 years. And it's probably not a total coincidence that that's just before the unrestricted free agency kicks in. Do the math. If you can't become unrestricted until four years and the average player is 3.3 years, that means the average player is never getting that bite at the apple.
Starting point is 00:25:19 Okay. Let's say you represent a player who has just become a free agent and you do your thing and you get offers from three teams. What are the primary factors that will go into the decision of where your client will want to go? And I especially want to know if workplace conditions are at all a major factor. Certainly compensation. Anybody that says that's not number one is probably lying. Even if the player has made that sort of money over the course of his career to achieve that generational wealth, the compensation is still going to be the primary factor. And then the team itself, the talent that the player is surrounded with, teammate-wise, the coaching staff, whether or not the team is anticipated to be a
Starting point is 00:26:02 playoff Super Bowl team, these are all things that I would say are a little bit more important to players than the workplace conditions. It's something that players are talking about, but I wouldn't put it in the top few factors of making free agent decisions. Another thing you need to realize about unrestricted free agency, this happens really fast. Sometimes a player has to make a life-altering decision in five minutes, because if the player is not ready to commit, that team's going to go on to the next guy on their list at that position. And when you have to make those quick decisions, the size of the locker room is really not coming up.
Starting point is 00:26:33 One of the factors that a player, an agent will absolutely consider is whether or not there's a state tax that's levied against the player with the team that he is signing with. And eight of the 32 NFL teams play in states where there is no state tax. And that could be a pretty big difference monetarily if you're talking about 0% taken out as opposed to 8, 9, 10, 11% in some of the higher states. List for me the no tax places. I guess it's all the teams in Texas and Florida. The two teams in Texas, it's the three teams in Florida, it's Vegas, it's Seattle, and it's Tennessee.
Starting point is 00:27:06 So it sounds like you put a lot less stock into the impact of the survey than someone like J.C. Tretter. So I'm trying to get a read on how much this survey really matters in the end. What do you think? I think it was a great idea for him to commission this survey and get responses from players. He should be holding teams' feet to the fire because I can guarantee you there are some owners that are upset. From what I've read, Arthur Blank down in Atlanta was disappointed that his team ranked where it did. And these guys are competitive. Regardless of whether or not it's really having an impact in free agent decisions, it doesn't mean that the survey is not going to affect change in a lot of
Starting point is 00:27:45 these facilities with these team owners, because if they perceive that it could be a problem in free agency, that's really the most important thing. So the Washington commanders got an F or lower. They actually got an F minus in a few categories in one, two, three, four of the categories, and then a couple of D's, a, and an A plus in strength coaches. So the players loved the strength coaches. But in terms of the things the team does otherwise, locker room, F minus. Team travel, F minus. Treatment of families, F. Can you talk about why those things matter so much to a player that they're going to give their own team an F minus? For sure. And I've never their own team an F-minus?
Starting point is 00:28:27 For sure. And I've never really heard of an F-minus before. Me neither. But it is important. And certainly, I think as a player ages throughout his career, it becomes more important because presumably they have a wife, they have children, and how the family is treated on game day, for instance, is a big deal. I remember about 15 years ago speaking to the front office of the Jets and they were asking, well, what could we do better? And we brought up the concept of a family room on game day and they didn't even understand what we were saying. And we said, hey, listen, you have players whose wives are coming with little kids and they're sitting in the stands and the beer is flowing and there's things that are said.
Starting point is 00:29:02 The concept of having a daycare in an NFL stadium not too long ago was unheard of. Now I think it's close to half maybe have them. Same thing with a family room where the players' families can go and shelter from bad weather, shelter from crazed fans. Are you surprised that so many, I mean, these are billion dollar franchises and they could pretty easily fix some of these problems if they cared with a little bit of money, like the family room is going to cost some money plainly, but not a ton. Are you surprised that there's this sort of penny wise pound foolish approach? Yes, I'm surprised. These are multi-billion dollar organizations.
Starting point is 00:30:05 Their most important asset, of course, is the talent that they're putting out on the field. So to read some of the things in the survey, uneven floors in the weight room where players feel afraid walking around, slippery floors in the pool area where players are falling. When you invest so much in your assets to have a workplace injury potentially happen, it would not be a good look and it is very surprising. But on the other hand, some of these teams are run by old school owners. You know, you look at some of the teams that are low on the list. I don't think it's an accident that the owners made their money from the team. They didn't come from a different industry. They came from where their grandfathers paid $500 and a bottle of whiskey for the team back in 1942, and they are kind of mired in old school ways and are maybe a little bit slow to come around. And no matter how much the front office wants to be progressive and implore them to change certain things, it still starts at the top, and the owner has final say. One problem for family-run firms is it can be hard to innovate.
Starting point is 00:30:56 How do you think outside the box when you've never left the box? That is Betsy Stevenson. I am an economist and professor at the University of Michigan, and I study labor markets. Are you a football fan, Betsy? I teach at the University of Michigan, so I have to just plead the fifth and refuse to answer this question. So that's a big fat no, plainly. Yeah, it's really awkward. Stevenson may not know football, but she does know labor economics. I served as the chief
Starting point is 00:31:26 economist at the Department of Labor, and I served as a member of the Council of Economic Advisors, giving advice to President Obama. Can I have an example of some labor economics advice you may have given? One big thing we talked a lot about was whether we should require forms of compensation outside of wages. Like, should people be required to get paid sick days? Should we require that people get paid maternity or paternity leave? What makes a good job and what's the role of government in shaping the conditions? So what makes a good job? That's an easy answer, yeah? Yeah, it's hard because we all have different preferences. And I think the hope of economists who believe in market forces is everybody wants different things and they'll
Starting point is 00:32:19 just be able to sort around the labor market until they find the thing that works for them. So when a company does provide what economists like Stevenson call compensation outside of wages, why do they provide that? Economists have come up with two buckets of reasons. So the first bucket is the benefits might be a complement to hard work. We actually see higher productivity because it induces more effort from workers. The second bucket is that employees might value the benefits more than it costs the employer to provide those benefits. So let's start with the first bucket, complement to hard work. That's why every company going back to the 50s that has office workers has coffee in the break room, right? You got to caffeinate your workers to get them to work hard.
Starting point is 00:33:12 The tech sector went a little crazy with this, like, hey, let's have ping pong tables. But it really was the same idea. Well, if you're socializing at work, you'll have less of a reason to leave. One of the more extreme examples was some of the tech companies started providing a benefit, which is we will pay for you to freeze your eggs. Oh, no, we have these hardworking female employees wringing their hands in their early 30s thinking they better have a baby. I know what we'll do. We'll pay to freeze their eggs and then they'll be able to keep working hard for a few more years. Betsy, I know you took a look at the NFL Players Survey. How do you think about their non-wage compensation in terms of this first bucket?
Starting point is 00:33:52 Yeah, it's great because you can actually see the categories here, which are clearly a complement to high productivity. Nutrition. They're like, what you eat is going to affect how you play, so we're going to feed you. The weight room. How you train up is going to affect how you play, so we're going to feed you. The weight room, how you train up is going to affect how you play. We're going to give you a weight room. This is really about are we giving you the inputs you need to be as productive as possible? When we think about things like the treatment of families.
Starting point is 00:34:20 That's bucket two, I assume? Yeah, this is something that's going to have a cost to them. But the question is, what's the value to the person receiving it? And that value might be quite high. My wife, my mom, my sister, my dad, they didn't come to games to tailgate and booze it up and cheer for the Cleveland Browns. They came to the game to make sure I walked off the field at the end. That, again, is J.C. Tretter, former NFL player and current president of the Players Union. I understand the guys on the field are making a lot of money. Even the guys making minimum salary are making a lot of money.
Starting point is 00:34:58 The risk they are taking, though, is substantial. And the damage they are receiving is substantial. And the damage they're receiving is substantial. And parents and kids and wives and siblings are there worried about their well-being. And the idea that the guys out there making the owner hundreds of millions to billions of dollars for what they're doing on the field while taking all of the risk physically, the idea that their wife and newborn baby are sitting on the grimy floor of a public restroom breastfeeding is just preposterous to me. 18 of the teams offer family rooms, 14 don't. And the teams that don't, like, where is that wife supposed to go? What's your prediction for, let's say, two years from now? How many of those 14 will offer it?
Starting point is 00:35:41 We've heard from some teams being like, ah, you know, we have an older stadium, there's no room for it, but everybody has suites. You know, like in the end, it comes down to a choice. So how many games did your family attend when you were playing for Cleveland? Yeah, they would be at almost every home game. And in the end, once I got my third contract, me and two other teammates went in on a suite. Like we bought our own suite. We all had young kids from two and under and we didn't want them out in the cold. So we said like, we'll pay the money and buy a suite.
Starting point is 00:36:11 How much did you have to pay? $150,000. Okay, split by three players with, let's call it eight home games a season. So a little over $6,000 a game you're paying out of pocket. I'll trust your math. Looks like a lot of teams are doing a really bad job. I mean, I saw a lot of Fs.
Starting point is 00:36:32 That, again, is the economist Betsy Stevenson. Like, maybe they're not getting the great inflation that our university students get these days, but a lot of Fs. And I think what that says is this is a job where there's a lot of cash thrown at these players and they don't think about anything else. Betsy, are you surprised that firms that are paying their key employees a relatively very high salary, that at least some of them on some dimensions are apparently so cheap when it comes to perks and benefits. I am surprised that any team is messing up when it comes to perks and benefits that would actually cheap compared to not just pay, but compared to the benefits they yield on the playing field.
Starting point is 00:37:31 Like one more victory would be worth quite a bit of money. One more victory is worth a lot of money, right? You could probably do a full renovation of your weight room. Do you think the issue here is that they're not connecting it necessarily or not believing the connection to productivity? Because otherwise, it's hard for me to understand why they would cheap out. is like they're just being dumb. Now, another answer is what's necessary in the weight room or the training room or nutrition in order to get the best out of your players on the field is being given. But players are looking for little aspects of that that don't actually have any impact on their productivity. You know, maybe they want a brighter, sunnier room. It can be hard to measure these things. Maybe if you had the brighter, sunnier room,
Starting point is 00:38:31 they'd work harder in training. And if they worked harder in training, they'd do better on the playing field. So you should figure out how to make it brighter or sunnier. You know, I painted little poppies on the wall in my gym, and I swear I Peloton faster because I love my field of poppies. Can I just say, if this economist thing doesn't work out for you, maybe NFL training room decorator would be a lovely second career? That would be fun, yeah. Are NFL team owners and bosses really just doing stupid things? We'll find out after the break. If you like this episode of Freakonomics Radio, there are three things you can do.
Starting point is 00:39:12 Number one, listen every week. We're here. You should be too. Number two, tell your friends and family to listen. That's the gift that keeps giving. And number three, if you're really ambitious, leave us a review or rating on your podcast app. Thanks in advance. We'll be right back. So according to a recent survey conducted by the NFL Players Union, many pro football teams are not such great places to work.
Starting point is 00:39:50 We reached out to all 32 teams asking for an interview with their owner or president. Nine never responded. 21 declined, with one communications director asking why we thought he would ever let us speak with his boss about this topic. In the end, two teams did agree to speak. Not surprisingly, they were the top two teams in the player survey. This is Mark Wilf, owner-president of the Minnesota Vikings. So Mark, congratulations on acing the NFL PA's reporter card. I'm just curious, how much did that matter to you? Well, it matters a lot. I mean, from day one of our ownership, 2005, it's our highest goal to
Starting point is 00:40:35 make our organization a world-class organization. And of course, that's winning Super Bowls, which is paramount, but facilities, staff, and community involvement. So here's a choice for you, Mark. You can keep an A grade, the number one ranking on this report card for, let's say, 10 years, but not win a Super Bowl. Would that be worth it? I mean, maybe winning isn't everything. Maybe treating people well is, in the long run, more important. Well, I strongly believe that culture in a building is critical, and I think it's critical to building championships. So I want to be greedy and say we want both. Okay, and let's hear from the team that came in second. Tom Garfinkel, Vice Chairman, CEO, and President, Miami Dolphins and Hard Rock Stadium.
Starting point is 00:41:27 Garfinkel is the top lieutenant to Stephen Ross, the real estate developer who is majority owner of the Dolphins. Steve is very focused on being best in class and being willing to invest in being best in class. So congratulations on doing so well on this NFL team report card. What was your first response when you saw your grades? Well, my first reaction was, I don't like being second, so we're going to fix the family area. I could promise you that. We will have the best family area in football next year. The Dolphins got an A or A-plus in every one of the eight categories except for the treatment of families. That grade was a C+, with some players saying they didn't get
Starting point is 00:42:05 enough passes to the post-game area. But otherwise, great reviews. Not coincidentally, the Dolphins recently opened a new $135 million practice facility. Long before they broke ground, Garfinkel says he and Ross toured a bunch of other football facilities, including college facilities, which tend to be extra deluxe since colleges can't use actual money to recruit players. One of the things that really struck us was at Clemson University, the locker room was really at the center of the facility. And from a layout standpoint, we really thought that's the right idea. We want this to be player-centric. We want the players to be at the heart of everything we do here. And so to put the locker room at the center of the activity was really paramount. And then designing around that, literally sat down with the architect with a pen and pencil and drew out where the different
Starting point is 00:43:00 functions would be adjacent to the locker room for players so that they could easily and quickly get to all the different areas that they needed to. So during the course of the day, players are going from where to where to where? So it could be the meal room, the cafeteria, it could be the team meeting rooms, which are where they spend a lot of time. There's everything from the sauna and steam room to the, you know, the cold and the hot plunge and the underwater treadmill. And then the training rooms next to that, where the doctors and the hot plunge and the underwater treadmill. And then the training rooms next to that where the doctors and the therapists are. And then next to that is the weight room. Is the locker room kind of where you come in, you drop your stuff, you get ready to do your day,
Starting point is 00:43:34 and then are you cycling back through the locker room during the day because in part, that's where your stuff is? Yes. I think the locker room is really home base for them. There's an area for them to charge their phone. There's a comfortable seat. It's not a locker, you know, talking to Dan Marino and those guys, they literally had a nail they used to hang their helmet on. These are very bespoke custom environments. We try to design the environment to be almost more Four Seasons-like without the mahogany. I think you'll find that the Dolphins logos are subtle. The only aqua you see in the locker room is the nameplate above the locker. Is that a tacit admission that people get sick of aqua? Because I would make that argument. I think you might get sick of
Starting point is 00:44:14 whatever the color is if it's all you see everywhere, right? So we did a rough analysis with the NFLPA report card, the grades versus win-loss records, basically. And it turns out there's very little correlation. In fact, it might be a little bit negative. A lot of teams that do really well on the report card have not had great seasons lately, haven't won a Super Bowl in a long time. Dolphins haven't won a Super Bowl in a long time. Whereas a lot of the teams who've won Super Bowls lately rank really low. That surprised me. I'm curious what you make of that back-of-the-envelope correlation. Well, I would say is that causation or correlation? This is the first year that survey
Starting point is 00:44:56 has been conducted, to my knowledge. If you're winning over a long period of time, maybe you don't feel the need to put the resources in. And if you're not winning, you feel the need to create some competitive advantage. So, you know, I'm not sure maybe over 10 years or something that'll play itself out. I'm not sure it's relevant in the short term. For a lot of reasons, including especially the pandemic, there's been a realignment of the relationship between firms and their employees. The pendulum kind of swings. It'll go really strong one side, then it'll come back.
Starting point is 00:45:26 I'm just curious what the last several years, including the pandemic, has taught you about what it means to be an employer in the modern era. Well, I certainly think employees are more empowered than in the past. Their voice matters more. It's really about listening. There's a tradition in football where a lot of things in the NFL are done the same way across teams in terms of how schedules are set, how coaching is applied, how scouting processes work. And one of the things I love about Mike, even in the interview process, was he really has an innovative mind. He really wants to do things differently. Garfinkel is talking about Mike McDaniel, the Dolphins head coach. And one of those things is that players are really different today than
Starting point is 00:46:10 they were even five years ago. They want to understand the why of things. And instead of just saying, shut up and get in line and do what I tell you to do, Mike will sit down with a player and say, well, you know, listen, wide receiver, here's why I need you to block corners and safeties in the run game. Well, I get paid to catch touchdowns. Okay. So then I'll show them the film and say, okay, here's a three yard run and where the wide receiver didn't block the corner of safety. Here's the wide receiver blocking the corner of safety. And here's a 35 yard explosive run, but watch what happens to the next play. Now the defense moves up into the box. Now you can run past them and score a touchdown. So you see how it's good for you.
Starting point is 00:46:45 So he explains it to them and they're like, oh, okay, coach. You know, I was down in the weight room today and the energy, the positive energy, the camaraderie, the excitement is palpable. I was at the Miami Dolphins training facilities last year and it's pretty state-of-the-art. That is Jason Kelsey, a longtime member of the Philadelphia Eagles. He plays center, the anchor of the offensive line, and he's considered one of the best players at that position in years. He is also the brother of Kansas City Chiefs tight end Travis Kelsey, who may wind up being the best player at his position in history. Travis and Jason make
Starting point is 00:47:22 a podcast together called New Heights, And in last year's Super Bowl, they played against each other, the Kelsey Bowl, some people called it. Travis's Chiefs won, but Jason Kelsey is the subject of a new feature-length documentary on Amazon's Prime Video. On the new team report card issued by the NFL Players Union, Kelsey's Eagles came out middle of the pack, 14th out of 32 teams with A's for food and the weight room, but a C- for the training room and a D for travel. I asked him if those grades reflected his own views. curious to see what the standard deviation on each one of these was because when I saw the results, it was almost to the T. You felt like you were looking at your answers. Yeah, but I know that a lot of guys filled it out. The D grade the Eagles got for team travel, would you agree with that assessment? That might've been lower than what I ranked it, but I did not rank it high.
Starting point is 00:48:24 If I was any higher, it was a C. I'm reading here, it says only half of the players feel they have enough room to spread out. I guess that's on the plane. You don't have roommates in a hotel at least, which some teams do, but you're one of only seven teams that don't offer first-class seats to their players. And I did not know that before this study. When Chip Kelly was a head coach, he did allow, obviously everybody can't sit in first class, but he did allow starters and players who are extremely large to sit in the first class seats instead of the coaches. It's a nice perk.
Starting point is 00:48:54 Anybody who sat first class knows that those seats are pretty nice. We have a player, Jordan Malata, who's north of 6'6 and 400 pounds almost. He's going to struggle to fit any situation in the back of the plane. I will say there was one point we were coming back on a short flight and they didn't turn the TVs on on the back of the seats. And I remember just flipping them. We're a billion dollar organization and we can't even get free movies on these flights. What's going on here, guys? Who'd you say that to? I said that to one of the stewardesses and then one of the guys that runs everything for logistics with the team kind of came back and he's like,
Starting point is 00:49:35 we're going to turn the TVs on, Jason. Now, what about being charged for food in Arizona, let's say? Did that surprise you? It didn't. That's the way it was in Philly my first few years, in the off season at least. We went to Arizona and we used the Arizona Cardinals facilities. And I can say firsthand, they are not investing in this place. The weight room had, I'm not kidding you,
Starting point is 00:49:58 the mats of the weight room were like, I don't know if they had water moisture that was getting in there, but the rubber mat that was on top of the concrete floor was like peeling up on the corners of it. You're like walking on an uneven surface the whole time. I was like, how are people not just getting hurt in here? It was eye-openingly bad, in my opinion.
Starting point is 00:50:16 What about the rats in Jacksonville? Did that surprise you? Not one bit. I mean, come on, man. I've gotten in trouble for talking trash on Jacksonville one time, so I got to calm it down. But yeah, that stadium, I have not been too much and I'm very thankful of that. Do you think this report card will lead to any change? I do. It's already led to change. They installed a much larger cold pool in the actual training room. We used to have two above
Starting point is 00:50:44 ground pools out back, which I always, you know, we're a billion dollar organization with above ground pools. I think we can maybe do better than this. Above ground outdoors, like in the winter? So they would have to shut them down in the winter. And that was a big issue with it. So they've already made corrections on that. I believe they're addressing some of the family issues at games. The weight room is adding another tier that's going to add more footprint for more bikes and other workout equipment. I do think teams are going to respond to it. Just like players are competitive, I think owners are competitive.
Starting point is 00:51:18 And I think that owners are certainly a good portion of owners are not going to like seeing their organization viewed in a negative light. And I think that they're going to try and correct these things. What can the rest of us learn from this process of a union representing the workers goes in, asks everybody a lot of questions, and then produces a report and it lands, and now we're going to see what happens. What should we be learning from this? What would you say to a CEO who might be listening to this and saying, holy cow, yeah, this is low-hanging fruit. I fixed the mats in the weight room and I don't have Jason Kelsey trashing me. That's right. I think unequivocally that
Starting point is 00:52:02 more unions should be doing this. It's different when one person comes to you with an anecdote or a one-off as opposed to a literal survey of your entire workforce saying, this is what we think of the place that you have us operate in. For CEOs and owners, I think that seeing it this way gives you a much more realistic idea of what your workplace environment is. So I would want this information. And as a worker, I would want my boss to know this, but to also not be punished if I tell him to his face. So I'm a big fan of this survey. I think that it will lead to a lot of change in some of these NFL organizations, especially if it's done on an annual basis.
Starting point is 00:52:49 And I see no reason why other fields or places of business would not follow suit and try to make changes as well. Nobody wants to be known as the cheapskate. I think that when, as before, when it was rumored you were the cheapskate, it was harder to prove. Now there's data. We want to live in a world where we're giving out 32 A pluses for all the teams. That again is JC Treader. And when we went into this year one, I told the staff when we started it, like, if all that comes from this is four teams start giving dinner to those players, it's a win. Now, I'm curious to know what you've heard from teams
Starting point is 00:53:38 about the survey. Have you heard anything directly from the teams? Yeah, we've heard from about 12 to 15 teams who have reached out to us just to say, like, what can we do better? Can you give us more information? What changes would make us better? I give credit to, like, Arthur Blank, who's the owner for the Atlanta Falcons. There was an article written where he said he pulled his president and GM and head coach aside and told them, one, if this comes out again, they absolutely cannot be graded as
Starting point is 00:54:04 low as they were before. And also that they need to start being more proactive and it shouldn't take this type of thing to create the change. Like they should be as leaders of the organization, be looking around corners and realizing where they're weak and where they need to improve. I don't know Arthur well from people who do. It seems like it's not just lip service and that he's going to act on those words. A few months ago, the Fal lip service and that he's going to act on those words. A few months ago, the Falcons announced a $30 million upgrade to their locker room, weight room, and cafeteria. Although they also said the renovations were already planned and were not done in response to the union report card, where they came in 23rd out of 32 teams. Those are the things you want to see. Like. Don't get defensive about this. That's not
Starting point is 00:54:45 what we're hoping for. We're hoping that people see like, okay, this team's providing this, this, and this. Maybe we should provide that too. Because in the end, as adversarials, sometimes we are. The teams need the players and the players need the franchises. Do you plan to do the survey every year? Yes. And year two is going to be more important than year one because year one, owners could claim ignorance. I think more will claim ignorance than should claim ignorance. And for some of it, I'm sure they didn't know. Like, I don't think many owners are hanging out in the hot tubs with the guys. And if they do, that's a story of itself that we should be diving into of why are they hanging out in the hot tubs with the guys. But year two, now that this is out there, if some things aren't changed, you can't claim ignorance anymore. Considering that an NFL workplace is substantially different in many ways from a typical workplace, what's there to be learned from this survey for workers and employers who have nothing
Starting point is 00:55:40 to do with pro sports, et cetera? The teams are called franchises, And I think that's a connector outside of our industry. I think there is an expectation that everything is equal in the NFL. And I think everybody would think it's equal at Starbucks and equal at Chick-fil-A and equal at McDonald's. And you go to a franchise, the rules and the treatment of the workers are the same. And I think we know that's not true. And if you're a worker, I think it would be valuable to know the treatment you will receive if you decide to work at one franchise not true. And if you're a worker, I think it would be valuable to know the treatment you will receive if you decide to work at one franchise versus another. And I also think if
Starting point is 00:56:10 you're the overall company, it would be interesting to see how your franchises who are carrying your name and dictating your brand image, how they treat their workers and how they treat their customers and how that varies across different franchise operators. I went back to Tom Garfinkel, the Miami Dolphins CEO and president, with a similar question. What kind of lessons are there to be drawn from this report card for the companies that aren't NFL teams? Are there things that are applicable or is the NFL work environment just too different to be useful for comparison? No, I think it's definitely useful for comparison. I think it comes down to culture,
Starting point is 00:56:54 values and standards, investment into your people. I'm a believer that people need to work together physically. Certain jobs, certain, you know, if you're coding, sitting at your computer all day and that's all you do, you could probably do that as easily from home as from an office. But most environments are still very human. They rely on human interaction and investing in those environments and investing in that organic interaction enhances creativity, it enhances productivity, it enhances... People want meaning want meaning right it goes back to victor frankl and everything i think meaning matters and i think what we do it's more than sports it's more than football it's about meaning it's about social interaction and we bring people together to
Starting point is 00:57:37 experience life together it's still better to be in a stadium when someone catches that pass in the fourth quarter to win a football game than to watch it on television by yourself at home because you're experiencing it with other people. And whether it's that as a fan or whether it's employees interacting together in the workplace, particularly in environments like this one, and many are like this, where people work very hard. They work long hours, and you're with your co-workers a lot, and you want it to be inspiring. You want it to inspire creativity, productivity, happiness, positivity. And I think that's the bigger lesson in all this than anything football-related. I have to say, when we started working on this episode about workplace conditions in the NFL, I never thought we'd end up at Viktor Frankl, but I'm glad we did. Frankl was an Austrian psychologist, a Holocaust survivor, best known for writing Man's Search for Meaning. If you haven't read it, I'd suggest you do.
Starting point is 00:58:41 It will make you think as it made Tom Garfinkel think. Thanks to him, as well as all the other guests on today's show. I'd suggest you do. It will make you think as it made Tom Garfinkel think. Thanks to him, as well as all the other guests on today's show. Coming up next time. This should not be something that only social conservatives care about or recognize as a problem. Melissa Carney studies what she calls the economics of families. She used to attend conference after conference where no one would talk about the elephant in the room. I can't go to another 20 years of policy
Starting point is 00:59:11 conversations about inequality and social mobility and not have family structure be something that we can talk about. When Carney says family structure, what she really means is that on average, two parents are better than one. It's not a moral argument. But it is an argument, a big one, and we will have it next time on Freakonomics Radio. Until then, take care of yourself, and if you can, someone else too. Freakonomics Radio is produced by Stitcher and Renbud Radio. This episode was produced by Ryan Kelly and mixed by Greg Rippin and Eleanor Osborne. Our staff also includes
Starting point is 00:59:51 Alina Kullman, Daria Klenert, Elsa Hernandez, Gabriel Roth, Jasmine Klinger, Jeremy Johnston, Julie Kanfer, Lyric Bowditch, Morgan Levy, Neil Carruth, Rebecca Lee Douglas, Sarah Lilly, and Zach Lipinski. You can find our entire archive on any podcast app. We're at Freakonomics.com, where we also publish transcripts and show notes. Our theme song is Mr. Fortune by the Hitchhikers. All the other music was composed by Luis Guerra. As always, thank you for listening. How'd you bowl today, by the way? Terrible.
Starting point is 01:00:25 It was one of my worst outings. The lanes were slick. They put too much oil on. Oh, come on, come on, come on. It wasn't ideal. A poor carpenter blames his tools. That's fair. The Freakonomics Radio Network.
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